There is a huge difference between the Babcock situation and Bylsma relative to draft pick compensation.
Babcock was still under contract and retention of his services was still part of Detroit's plans. Allowing him to speak with other teams prior to termination of the contract is a legit use of compensation, IMO.
Bylsma - while under contract to the Pens - was relieved of his duties. The Pens have the right to negotiate compensation - but IMO should just be happy to be relieved of his contract.
The clear difference is the the Red Wings still wanted Babcock while the Pens do not want Bylsma.